Firm has cut 700 jobs and will become low cost provider
Helphire’s profits fell by more than 90% even after adjusted figures that flattered the raw numbers. Unadjusted, the loss was £136m.
Financial highlights (2008 in brackets)
- Adjusted operating profit before tax of £4.7m (£55.4m)
- Pre-tax loss of -£149.0m (£43.0m profit)
- Cash generation from operations of £57.2m (£22.3m)
- ABI Cash recovery increased by 39% to £354.7m (£255.1m)
- 13.2% reduction in debtor days to 223 days (257days)
- Net debt reduced by £122.8m to £239.5m (£362.3m)
Martin Ward, group managing director, said: "The new management team has responded robustly to some very considerable challenges facing the business and the financial consequences are evident in our financial statements.
"As we reach the end of the first phase of our three-phase plan to cement the recovery of the business, we believe we have aligned Helphire properly within the marketplace and are ahead of our plans both in terms of timescale and quantum, having positioned it to operate profitably and cash positively as we embark upon the more forward-looking phases.
“The current year has started with trading in line with our expectation and we are continuing to generate operating cash."
Low cost provider
Chairman Richard Rose said the company had already cut 700 jobs. “We will continue to strengthen our position and complete our restructure to achieve our goal of being a low-cost provider,” he said.
